EIB agrees loan for Chinese forestry projects

London, 2 March (Argus) – The European Investment Bank (EIB) will provide China with a €250mn ($330mn) loan to help fund forestry projects for climate change mitigation, the bank said on 1 March.

The framework loan agreement, which was signed by EIB vice-president Magdalena Arza and China's minister of finance Li Yong, will finance up to eight pre-selected investment schemes in the country. The EIB will perform due diligence on each project to ensure its viability.

“The bank is pleased to contribute to the efforts of the Chinese government to tackle the global challenges posed by climate change,” Arza said. “This loan also represents a further step in our commitment to abate greenhouse gas emissions and is the latest in a series of very successful operations with the Chinese authorities in this area.”

The projects selected will be part of the country's forestry programme, with special focus on environmental and biodiversity preservation and improvement, and climate change adaptation and mitigation.

This will be the second forestry loan the EIB has agreed with China after a previous one in 2007. The loan is being provided under the bank's €4.5bn energy sustainability and security of supply facility.